2011 Tax numbers

[BrianFromWA]

Gregg Easterbrook's TMQ article brought up the link that I'd been looking for for 2011 taxes.

http://www.taxpolicycenter.org/numbers/displayatab.cfm?Docid=3277

Bush's cuts nearly eliminated federal income taxes on the working class and lower middle class. Considering cash back from the Earned Income Tax Credit, those in the bottom 20 percent now have a federal income tax rate of negative 12.3 percent -- they receive money from the United States Treasury rather than sending any in. Those in the second quintile, from 20 to 40 percent of income, have a federal tax rate of negative 4.2 percent. The middle quintile -- stronghold of the middle class -- pays just 4 percent in federal income taxes. The upper middle pays 8.2 percent in federal income taxes, and the top quintile pays 17.3 percent.

Even when payroll taxes (Social Security, Medicare and Medicaid) are added, the picture is good. Between a 13 percent payroll tax and negative 12.3 percent income tax, the poor and the working poor in the United States essentially pay nothing for the many government benefits they receive: health care, housing subsidies, educational support, food stamps, pensions. The core middle class -- that middle quintile -- pays a total federal tax rate of only about 15 percent and receives in return health care, Social Security benefits, college grants, mortgage subsidies, highways, national defense, national parks, law enforcement, environmental and medical research, space science and much more.

Per the link, the numbers for the quintiles (AGI) are:

Lowest 20%: up to $16,812
20-40%: $16,813 to $33,542
40-60%: $33,543 to $59,486
60-80%: $59,486 to $103,465
80-90%: $103,466 to $163,173
90-95%: $163,174 to $210,998
95-99%: $210,999 to $532,613
99-99.9%: $532,613 to $2,178,886

On average, everyone who makes <~46k AGI is getting paid to live here by the others, and is able to partake of the benefits quoted above.

 

[jlprk]

The people at the top should subsidize capitalism the most because without it, they wouldn't be at the top.

You might call the process which elevated them to the top a subsidy that they receive continuously.